Landmark Partnership

RNS Number : 9861G

IronRidge Resources Limited

12 August 2016

 

12 August 2016

IronRidge Resources Limited

Landmark Partnership and Exclusive Access Rights Secured

Province Scale Gold Discoveries in Chad, Central Africa

IronRidge Resources Limited (AIM: IRR, 'IronRidge' or the 'Company') is pleased to announce that it has entered into a conditional share subscription agreement with Tekton Minerals Pte Ltd ('Tekton') which provides IronRidge with access to exclusive rights to an extensive land package and associated major new gold discovery (the 'Projects') in Chad, Central Africa.

HIGHLIGHTS:

·      IronRidge will invest up to US$3.5m in Tekton for up to a 58% shareholding (the "Investment"). The Investment will provide IronRidge with a first mover advantage within several highly prospective, province-scale, gold mineralised belts with little or no modern-day exploration and largely forgotten due to Chad's historical oil exploration and production focus.

·      Tekton has secured exploration rights over 1,400km² of gold mineralised, province-scale geological structures emplaced in potential gold-bearing equivalents of the gold-rich Birimian Greenstone belts of Ghana, Senegal, Mali, Cote d'Ivoire and Burkina Faso in the Ouaddaï Province of the Saharan Metacraton. Work to date indicates the potential for several multi-million ounce gold discoveries within the Ouaddaï Province alone.

·      Tekton has extensive in-country exploration, logistics and government relations expertise, with experienced and committed teams in place and demonstrated highly skilled francophone African expertise. Over two years of comprehensive exploration work has been completed to date by Tekton. Multiple high-priority gold targets defined within the Dorothe, Echbara and Am Ouchar licences, including one drill ready target defined at Dorothe and additional untested lithium, graphite, base metal and uranium targets within the license portfolio.

·      Extensive active and historic artisanal gold workings observed over 3km² within weathered and fresh rock within the Dorothe target alone. Over 116 rock chip samples and 302 trench samples collected at the Dorothe prospect to date, of which 40% of the rock chips and 28% of the trench samples have grades greater than 0.5g/t Au and up to 103g/t Au over a >3km² area.

·      Trenching results at Dorothe, including 14.12g/t Au over 4m, 34.1g/t over 2m and 63.2g/t over 1m, has defined significant gold mineralised quartz veining over a confirmed 1km strike at an average of 2m and up to 5m true width across multiple stacked vein zones up to 200m wide with new hard-rock artisanal workings potentially extending strike to >3km.

·      Gold nuggets up to 1cm across, including gold in quartz-vein material and disseminated gold observed in the project areas.

·      Historical United Nations Development Programme ("UNDP", 1990's) field work defined a 100-300ppb gold in soil anomaly over a 2km strike and 100m to 200m width with best trenching results of 1.29g/t over 28m and 0.61g/t Au over 56m within the Echbara prospect; yet to be drill tested.

·      Additional kilometre scale lithium and graphite anomalies defined within the project portfolio.

Commenting on today's landmark news, Vincent Mascolo, Chief Executive Officer of IronRidge, said: "The Company is pleased to have entered into partnership with Tekton, not only for its world-class project portfolio but equally with its world-class management team. Tekton brings with it a highly professional and experienced team with a proven track record in geological target generation and development, government relations, logistics and security.

"The team's expertise has been fostered over decades of experience in the major and junior arena and in particular within Francophone West and Central Africa.

"Chad represents a highly prospective, under-explored destination for minerals with obvious gold endowment, largely forgotten due to the focus on oil, with an attractive mining code and investment framework where major oil companies (including Total, Chevron and Glencore) have been operating for decades."

About the Projects

Tekton has secured exclusive rights over five exploration permits covering a total of 1,000km², in addition to 400km² of reconnaissance licences within the Ouaddaï Province; an under-explored yet highly prospective domain within the Saharan Metacraton of Central Africa. The Saharan Metacraton represents a potential gold-bearing equivalent to the prolific Birimian Greenstone belt, known for several world-class gold mines in Ghana, Senegal, Mali, Cote d'Ivoire and Burkina Faso.

Comprehensive exploration activities have been conducted by Tekton over the last two years including: geological mapping, soil and rock-chip sampling, trenching and channel sampling, ground magnetic and resistivity surveys, high-resolution Digital Terrain Modelling ("DTM") and aerial photography utilising drone technology and mineralogical studies.

To date, three highly prospective, gold mineralised areas including extensive artisanal workings over areas exceeding 4km² and one drill-ready target/advanced exploration target with the potential to host a multi-million ounce gold deposit have been defined over the Dorothe, Echbara and Am Ouchar licenses. Additionally, two further highly prospective reconnaissance licenses have been awarded within the same province over the Adé and Nabagay targets.

Two further exploration licenses have been granted at Waya Waya in the Northern Ouaddaï region with outcropping and extensive graphite occurrences and anomalous zinc and uranium mineralisation from preliminary mapping and rock chip sampling.

Please see link at the end of this announcement to view Figure 1: Granted license areas (left) and regional geological setting (right, after Liegois, 2005) within Ouaddaï Region of Chad, Central Africa.

Dorothe

Mapping and sampling at the Dorothe target to date has defined two distinct gold mineralising events; an early centimetre scale shallowly westward dipping quartz vein swarm zone over a 3x1km area and later, cross-cutting sub-vertical 1-5m true thickness, north-south striking quartz vein zone up to 200m wide and over a confirmed 1km of strike with possible extensions up to 3km of strike.

 Please see link at the end of this announcement to view Figure 2: Extensive artisanal workings and gold washing area over the Main Vein (above) and artisanal pitting zone over 3x1km area (below) at the Dorothe prospect.

The earlier stage quartz vein swarm zone occurs over an approximate 3x1km north-east trending zone at the apparent flexure of a major north-west striking fault and is clearly defined by extensive artisanal workings into weathered surface rock. The later stage, cross-cutting sub-vertical quartz vein swarm has been clearly mapped and sampled by trenching over a 1km strike, with potential for further strike extensions to the north and south based on recent artisanal mining.

Of the sampling completed to date, over 40% of the rock chip samples collected at the Dorothe target returned grades over 0.5g/t Au with grades up to 103 g/t, 99.6g/t, 94.5g/t and 82.2 g/t Au. Trenching and channel sampling across strike of the north-south quartz vein system has returned multiple gold intersections over 10g/t Au along a combined 1km strike length, with better intersections of 4m at 14.2g/t, 2m at 34.1g/t, 2m at 31.1g/t and 1m at 63.2 g/t Au. The north-south vein set is not restricted to a single quartz vein, however in places occurs as multiple splays and sub-parallel veins over a 20m to 50m width.

Please see link at the end of this announcement to view Figure 3: Extensive surface workings defining 3x1km early stage gold mineralised zone and second stage >1km strike high-grade quartz vein zone (inset; Dorothe license setting over regional geology).

Preliminary scoping laboratory column leach test-work completed by Wardell Armstrong in the UK from 56 auger samples collected over artisanal tailings at the Dorothe prospect has confirmed an 85% gold recovery within a 10-day period. Additional mineralogical studies indicate that gold mineralisation is non-refractory and occurs as free gold within the oxidised, surface artisanal tailings material.

Of significant merit is that little or no saprolite nor laterite surface weathering material is developed over the project area, with channel sampling typically into 'fresh rock' and representing potential in-situ grades.

Please see link at the end of this announcement to view Figure 4: photomicrograph of gold mineralisation (left), gold mineralised rock-chip samples and gold nuggets (right and below) from the project areas (centimetre scale, unless shown otherwise).

Echbara

The Echbara license covers 200km² and is 25km west of the Dorothe license. Historical work completed by the UNDP during the 1990's has defined a 2km long by 150-200m wide 100ppb soil anomaly with highs of 300ppb. Follow-up trenching by the UNDP has returned results of 58m at 1.29g/t Au and 28m at 1.29g/t Au. Follow-up trenching by Tekton has returned results of 56m at 0.61g/t Au (including 10m at 0.9g/t Au and 20m at0.87g/t Au) and 25m at 0.8g/t Au. This target has not been drill tested.

The target occurs within micaceous schists bound to the west by quartzites and east by carbonates with interpreted cross-cutting north-west orientated faults. A large, late granitic intrusion occurs approximately 3km to the south-east of the known gold anomalism.

The relationship between granitic intrusions and major structures are thought to be important in localising gold mineralisation.  Tekton is refining this model for application across the other targets in the total project area.

Please see link at the end of this announcement to view Figure 5: Echbara regional geology map with historical pitting and landscape photo inserts.

Am Ouchar

The Am Ouchar license covers 200km² and is 70km south-east of the Dorothe license. Historical work by the UNDP during the 1990's indicated that gold mineralisation is hosted within 2-5m thick, shallow dipping north-east trending quartz veins and within the adjacent hematitic schists. UNDP trenching results included spectacular intersections of 20m at 6.8g/t Au, 16m at 4.7g/t Au and 12m at 5.7g/t Au with individual 2m composite grades up to 33g/t Au.

Follow-up channel sampling by Tekton perpendicular to quartz veins and within the adjacent host rock returned intersections including 2m at 18.2g/t Au, 2m at 14.2g/t Au and 2.3m at 9.9g/t Au, providing confidence in the reported grades and extension of mineralisation into the adjacent host rock.

Please see link at the end of this announcement to view Figure 6: Extensive artisanal gold workings at Am Ouchar.

Other targets

Recently granted licenses covering a total of 400km² at Nabagay and Adé cover further exciting and highly prospective geological targets within the Ouaddaï South project portfolio.

The Adé license, located approximately 40km east of Dorothe, occurs within an interpreted 'pressure-shadow' adjacent to a large 15km diameter late granitic intrusion. Regional soil sampling by the UNDP during the 1990's identified multiple lithium soil anomalies up to 5km in strike length in addition to multiple coincident and isolated gold in soil anomalies adjacent to the granitic intrusive contact.

The Nabagay license is located approximately 25km north of Dorothe and is considered prospective for gold mineralisation in similar geological settings as the Dorothe project.

The Waya Waya licenses cover 400km² within the Ouaddaï North Region, approximately 260km north of the Dorothe project area. Historical work by the UNDP during the 1990's and follow-up mapping and rock-chip sampling by Tekton has identified a 15km long and approximately 50m wide surface graphitic schist occurrence.  Reconnaissance rock chip and channel sampling completed by Tekton has returned results of 11% to 12% total carbon content (Ct) with historical results by the UNDP up to 18% Ct.  

Multi-element geochemical analysis has also indicated potential anomalous uranium and associated pathfinder elements typically observed in sandstone hosted uranium deposits. Furthermore, anomalous zinc and lead results have been identified associated with pegmatites.

Project access

Access to the project area is via a sealed and well maintained 900km bitumen toll road from the capital city N'Djamena to Abéché, followed by a 200km maintained laterite road to the project area. Travel time from N'Djamena to the project area is approximately 15 hours by road. International air carriers Air France, Royal Air Maroc, Turkish Airlines and Ethiopian Airline provide frequent travel into N'Djamena and the project area is serviced by charter flights and UN aircraft into Goz Beïda taking approximately 2 hours. 

The Investment

The Company has entered into a conditional share subscription agreement dated 12^th August 2016 ("Subscription Agreement") with Tekton Minerals Pte Ltd ("Tekton"), under which IronRidge has agreed to invest up to US$3.5 m in cash in Tekton within an 18 month period following completion of the Subscription Agreement in return for up to a 58% interest in the issued share capital of Tekton.

It is intended that the funding will be used to undertake further exploration work and to prepare a technical report compliant with Canadian NI 43-101 or Australian JORC requirements.

From the commencement of the Investment, Nick Mather (Chairman of IronRidge) will be appointed Chairman of Tekton, Vincent Mascolo (CEO and Managing Director of IronRidge) and Len Kolff (IronRidge's Country Manager in Gabon) will join the board of Tekton.

Completion of the Investment is subject to certain conditions being met by Tekton principally in relation to the securing of Tekton shareholder approvals.

About Tekton

Tekton is a private Singapore registered company, which was established in 2013 and is majority owned by its management team.  

About Chad

With a population of 13.6 million (World Bank, 2016), Chad covers a surface area of 1.2 million km². It is a stable Republic with a US$2,500 GDP per capita per annum (2013 estimate), is a member of the OHADA and EITI, and has a projected economic growth of 11.2% (African Economic Outlook, 2014). Major oil companies Total, Exxon, Chevron and Glencore have been active in Chad for several decades and Chad is a major oil producer and refiner for the domestic and international markets.

Chad has an attractive Mining Code and investment framework. Mineral exploration licenses are granted for 5 years and are renewable twice for a total additional 10 years. Mining licenses are granted for a 25-years term and are renewable, with up to a 10-year tax holiday period and a corporate tax rate of 35% (negotiable). The State has the right for a 10% free carry and 2% royalty.

The Company looks forward to keeping its shareholders updated on progress and will announce results of the field programmes as news becomes available.

For any further information please contact:

IronRidge Resources Limited
Vincent Mascolo (Chief Executive Officer)	Tel: [phone]
Nicholas Mather (Executive Chairman)	Tel: [phone]
SP Angel Corporate Finance LLP	Tel: [phone]
Nominated Adviser and Broker
Jeff Keating Yellow Jersey PR Limited Dominic Barretto Aidan Stanley	Tel: [phone]

Notes to Editors:

IronRidge Resources is an AIM listed mineral exploration company with frontier assets in both Australia and West Africa, with two province scale projects in Gabon, and promising and advanced titanium and bauxite projects in Queensland Australia. IronRidge's corporate strategy is to create and sustain shareholder value through the discovery of world-class and globally demanded commodities.

Australia

Monogorilby is prospective for province scale titania and bauxite with an initial maiden resource of 54.9MT of premium DSO bauxite Monogorilby is located in central Queensland, within a short trucking distance of the rail system leading north to the Port of Bundaberg. It is also located within close proximity of the active Queensland Rail network heading south towards the Port of Brisbane.

May Queen is located in Central Queensland within its wholly owned Monogorilby license package and is highly prospective for gold with drill ready targets defined. Historic drilling completed during the 1980s intersected multiple high-grade gold intervals including 2m @ 73.4 g/t Au (including 1m at 145g/t), 4m @ 38.8g/t Au (at end of hole) and 3m @ 18.9g/t Au, over an approximate 100m strike hosting numerous parallel vein systems, open to the north-west and south-east.

Wholly owned Quaggy contains highly anomalous platinum, palladium, nickel, cobalt and copper exploration targets and is located in Central Queensland within a short trucking distance of the dormant rail system to the Port of Bundaberg. It is also located within close proximity of the active Queensland Rail network heading south towards the Port of Brisbane.

Gabon

Tchibanga is located in south-western Gabon, in the Nyanga Province, within 10-60km of the Atlantic coastline.  This project comprises two exploration licenses, Tchibanga and Tchibanga Nord, which cover a combined area of 3,396km² and include over 90km of prospective lithologies and the historic Mont Pele iron occurrence.

Belinga Sud is Located in the north east of Gabon in the Ogooue-Ivindo Province, approximately 400km east of the capital city of Libreville. IRR's licence lies between the main Belinga Iron Ore Deposit, believed to be one of the world's largest untapped reserves of iron ore with an estimated 1bt of iron ore at a grade >60% Fe, and the route of the Trans Gabonese railway, which currently carries manganese ore and timber from Franceville to the Port of Owendo in Libreville.

Corporate

IronRidge made its AIM debut in February 2015 successfully securing strategic alliances with three international companies; Assore Limited of South Africa, Sumitomo Corporation of Japan and DGR Global Limited of Australia. Assore is a high- grade iron, chrome and manganese mining specialist. Sumitomo Corporation is a global resources, mining marketing and trading conglomerate. DGR Global is a project generation and exploration specialist.

The Board of Directors is represented by mining industry professionals with a broad range of corporate, exploration, production, contracting and capital markets experience. The Company was admitted on 12 February 2015 (Ticker Code IRR) and currently has 236,612,203 shares and 14,770,000 unlisted options on issue.

Please see link at the end of this announcement to view other photos taken during the recent site visit.

To view the figures and photos, please click on or copy the following link into your web browser:

http://www.rns-pdf.londonstockexchange.com/rns/9861G_-2016-8-11.pdf

 

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